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By CHARLES E. BEGGS The
Associated Press |
SALEM, Ore. (AP) — A House-passed bill that would moderate the impact of a
potentially sharp boost in power rates for Klamath Basin farmers was diverted to
committee Thursday by the Senate, which has passed a version of the measure
without the rate amendments.
Sen. Rick Metsger, D-Welches, said senators need a chance to hear arguments
for the House provisions that are intended to help about 1,300 Pacific Power
electricity customers on the Klamath Reclamation Project and neighboring lands.
The measure will go to a House-Senate conference panel.
The affected customers benefit from below market-priced power under a 50-year
contract that expires next year. Pacific Power proposes to raise electric rates
to market prices, which analysts say would cause prices to jump by 1,200 percent
if implemented all at once.
The bill passed 47-10 by the House would phase in the rate impact by limiting
year-to-year increases to no more than 50 percent a year for seven years.
The rate increase request is pending before the state Public Utility
Commission.
The contract involves arrangements dating to the early 1900s involving power
cost agreements and the utility's construction of hydroelectric dams in the
region.
The company says current rates are far below those needed to generate and
deliver power and maintain its infrastructure. Farmers say absorbing a huge rate
increase all at once would drive some of them out of business.
The power issue has led to conflicts because farmers who want water for their
crops and those who believe higher rates would reduce irrigation, conserving
more water for threatened and endangered fish.
Some conservation groups want a faster phase-in of market rates on grounds
that the utility's other customers should not have to subsidize the farm rates
for seven more years.
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Source: http://www.oregonlive.com/newsflash/regional/index.ssf?/base/news-
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